A/N The timeline for the Initiative being shut down is prior to Hush. The government, the military and Riley are all unaware that Buffy and Faith are Slayers. They will not find out from Xander or Giles.
Xander called Cordelia and let her know, he was not in any trouble. Because of the Classification he couldn't tell her any specifics, just like with the knowledge in his head. All he could tell her was some idiots tried doing something stupid with demons and included military people in the project. Which was illegal. He also told her, he had to go to Sunnydale and talk to Giles because the government wanted to hire him. He'd be home as soon as he could.
Xander knocked on the door of Giles' condo. He was pretty sure, Giles wasn't going to be happy, but hopefully he'd let him explain.
When Giles opened his door at the sound of a knock, he was surprised to find Xander there. He hadn't told him, he was coming to visit.
"Xander? Is everything alright? Why didn't you let anyone know you were coming?"
"Because what I need to talk to you about is literally Top Secret, as in Classified by the U. S. Government. Before I tell you why I'm here Giles, I need you to sign a non-disclosure agreement. You can't tell anyone what I'm here to talk to you about. Not the gang, not the Watchers Council, no one. They'll bury you if you do, Giles. It's that important. Just sign the paper so I can tell you what major league crap we managed to avoid." Giles reluctantly signed the agreement, he did not like not having the information first.
"I work for the U.S Air Force as a civilian contractor doing translations. As a result of working for the military, I am legally accountable to the UCMJ, the Uniform Code of Military Justice. Which means, when you told me that military personnel were involved in an operation in Sunnydale, I knew they were committing a crime. No military personnel can legally operate on U.S. soil outside the bases. And since I know that and am subject to the UCMJ, I could have also been prosecuted if it ever came out that I knew and didn't report it. I said nothing about demons, but I did report the fact that there appeared to be military personnel operating illegally in Sunnydale to the General of the base I work at. He has a direct line to the President. The President ordered an investigation. They shut down the project and in the process, are now aware of demons and vampires being real. I was ordered by the President to reveal all information I had on the vampires and demons to him, the Joint Chiefs, the head of the FBI and the head of the CIA. It was an order I could not refuse. I informed them of what I know and they informed me of the project. It was an attempt to control and militarize demons and vampires for action against our enemies. Now that the government knows they exist the President has ordered a Top Secret Command be established to hunt and destroy all vampires and demons that are a threat. They want to hire you to teach them about the ones that are dangerous and how to kill them. They are unaware of the existence of the Slayer. I did not tell them about Buffy or Faith and I won't."
Rupert Giles listened with horror to Xander's story, he wanted to yell at him, but what else could Xander have done? If the Queen had ordered him to speak, he would have. He could understand Xander's dilemma. That didn't mean he had to like it. But of even more concern, was the knowledge that people had tried to militarize and control the loathsome creatures. To send them against human targets. There were times when Giles wondered if humanity was trying to destroy itself. Sometimes he despaired, why were they fighting to save people bent on destroying themselves?
"I understand Xander. I don't like it, but I understand. I could not have refused such an order from the Queen, if she had issued one to me. As for the job offer, I don't know. What would it entail? Would there be any attempt at control like with the project you mentioned?"
"No. The President is adamant on that point. The teams formed will have one purpose. Destroy vampires and hostile demons. Your job would be as an advisor and teacher. You would teach them the strengths and weaknesses of what they'll be hunting. They won't be using stakes Giles. They're much more modern then that. They'll use incendiary rounds. Bullets that can be fired from a distance and set objects on fire. You will not be hunting, just advising and teaching. Pays well, too."
"And I can tell no one of this? Even if I don't take the job?"
"No one, Giles. They will prosecute you if you do. And since we have a number of treaties and agreements with England, things would be uncomfortable for you there, too."
"I feel almost like I'm being blackmailed."
"Oh, they're not going to force you to work for them, Giles. They just don't want you talking about it to anyone. I can't tell you the specifics of what I work on, because it's Classified too. Beyond what I've already told you. That's all I'm allowed to say. It would be the same for you. You could continue to live here in Sunnydale and travel as needed. They can do the training here. They want to study the Hellmouth anyway. They hope to figure out how to permanently seal it without destroying the town. But Buffy, Willow, Cordelia and Faith cannot find out from you or me. Ever. Not without permission."